International Marketing - EXAM 2 - Chapter 10

Buyer Orientation

-amount of effort expended -level of risk -buyer involvement

Product Extension

Products may serve the same or different needs in different markets

Product Adaptation

adapting a product to meet local conditions or wants in foreign markets

Global Brand Development

- does the move fit the company and its markets? - will anticipated scale economies materialize? - how difficult will it be to develop a global brand team? - can a single brand be imposed on all markets successfully?

Local Products and Brands

-Brands that have achieved success in a single national market -Represent the lifeblood of domestic companies -Entrenched local products/brands can be a significant competitive hurdle to global companies 3 Categories - Local, International, Global

Buyer Orientation Framework

-Convenience goods -Preference goods -Shopping goods -Specialty goods

Global Products and Brands

-Global products meet the wants and needs of a global market and are offered in all world regions -Global brands have the same name and similar image and positioning throughout the world

Product/Brand Matrix

1. Local Product/Local Brand 2. Global Product/Local Brand 3. Local Product/Global Brand 4. Global Product/Global Brand

Express Warranty

A written guarantee that assures the buyer is getting what he or she paid for or provides a remedy in case of a product failure Warranties can be used as a competitive tool

Eco-Packaging

Addresses environmental issues like recycling, biodegradability, & sustainable forestry

Adaptation - Strategic Alternatives in Global Marketing

Changing elements of design, function and packaging according to needs of different country markets.

Branding Strategies

Combination or tiered branding allows marketers to leverage a company's reputation while developing a distinctive identity for a line of products Co-Branding - Two or more company or product brands - ex. NutraSweet & Coca-Cola

Global Product Planning: Strategic Alternatives

Communication --- Product Same/Same - Dual Extension Different/Same - Product Extension, Communication, Adaptation Same/Different - Product Adaptation, Communication, Extension Same/Different - Dual Adaptation

Product Invention - Strategic Alternatives in Global Marketing

Developing new products for the world market

Communications Adaptation

Dual Adaptation - Both may need to change for legal, cultural, or other environmental reasons - ex. Nike "Just Do It" did not work in China

Brand Equity Benefits

Greater loyalty Less vulnerability to marketing actions Less vulnerability to marketing crises Larger margins More inelastic consumer response to price increases More elastic consumer response to price decreases Increased marketing communication effectiveness

Innovation

Important for reaching mass markets in less industrialized nations and certain segments in industrialized countries

Extension - Strategic Alternatives in Global Marketing

Offering product virtually unchanged outside of home country

Asian Hierarchy of Needs

Physical - physiological, safety Social - affiliation, admiration Status

Maslow's Hierarchy of Needs

Physical - physiological, safety Social - social, external & internal esteem Personal - self actualization

International Products and Brands

Products and brands offered in several markets in a particular region - ex. Honda 5-door hatchback auto is known as Fit in Japan and Jazz in Europe

Labeling

Provides consumers with various types of information Regulations differ by country regarding various products - ex. Health warnings on tobacco products.

Global Brand Characteristics

Quality signal—allows a company to charge premium price in a highly competitive market Global myth—marketers can use global consumer culture positioning to link the brand identity to any part of the world Social responsibility—shows how a company addresses social problems

Global Brand Leadership

The act of allocating brand-building resources globally with the goal of creating global synergies and developing a global brand strategy that coordinates and leverages country brand strategies.

Brand Image

The consumers' beliefs about the company and/or its goods or services often in terms of quality, price, and value

Consumer Packaged Goods (CPG)

Variety of products whose packaging protects or contains the product from production to the end user

Aesthetics

Visual Aesthetics - embodied in the color or shape of a product, label, or package Aesthetic Styles - the degree of complexity found on a label

Identifying New Product Ideas

continuous innovations- least disrupting influence on established consumption patterns dynamically continuous - some disrupting influence on established consumption patterns innovation discontinuous innovations - requires new consumption patterns and the creation of previously unknown product

Brand Extension

extending an existing brand name to new product categories

Dual Extension

same promotion, same product - ex. iPhone, Windows 10

Brand Equity

the added value a brand name gives to a product beyond the functional benefits provided